Gov’t approves tax payment deadline extension proposal

The tax payment extension is seen as an interest rate-free loan provided by the State to support enterprises and individuals to gather more financial resources to overcome difficulties caused by the COVID-19 pandemic. 

Beneficiaries of the policy include enterprises, organizations, business households and individuals operating in agro-forestry-fishery, construction, entertainment, crude oil extraction, food production, transport vehicles production, waste water treatment, logistics, hospitality and catering services, education, healthcare and real estate.

Credit institutions and branches of foreign banks in Viet Nam providing support for enterprises and customers affected by the pandemic could also be subject to extension of tax payment deadline under the decree.

Decree 34 shall take effect from the date of issuance to December 31, 2022. 

Specifically, the Decree stipulates a six-month extension for VAT from March to May 2022 and the first quarter of 2022, five-month extension for VAT in June 2022 and Q2 2022, four-month extension for VAT in July 2022, and 3-month extension for VAT in August 2022.

For corporate income tax (CIT), extension of the tax payment that enterprises have to pay temporarily for the second and third quarters of 2022 is three months. 

As for business households and individuals, the extension of VAT and PIT in 2022 is no later than December 31, 2022.  

In addition, the Government also agreed a six-month extension for the payment of fees for leasing land and water surface in 2022, starting from May 31, 2022 to November 30, 2022.

This is the fourth time the Government decided to extend the payment deadline of taxes and land rental fees for businesses and people affected by the pandemic, estimated to be worth up to VND54 trillion (US$2.32 billion).

Earlier, the Government also continued extending the deadline for excise tax payment for domestically-manufactured and assembled cars./.